Processing volumes in the fourth calendar quarter of 2015 were 9% lower
than the same quarter of the prior year due primarily to three weeks of
maintenance shutdowns in the processing plant.

Diamonds recovered in the fourth calendar quarter were 3% lower than the
same quarter of the prior year reflecting lower processing volumes which
was partially offset by a higher recovered grade.

Diamonds recovered in calendar 2015 of 6.4 million carats were 9% lower
than the original calendar 2015 plan of 7.0 million carats due to a
combination of ore availability issues resulting from lower mining rates
from A-154N and lower grades from A-418 earlier in the year, and
availability of the process plant in the fourth calendar quarter.

The development of the A-21 pipe continues to progress according to plan.

A new mine plan and budget for calendar 2016 is under review by Rio
Tinto plc and the Company.

Run of Mine Production – Calendar 2016

Diavik Diamond Mine (100% basis)

Tonnes Mined(millions)

Tonnes Processed(millions)

Carats(millions)

Preliminary Mine Plan for Calendar 2016

2.1

2.1

7.0

Mining activities will be exclusively underground and ore will be
sourced from the following kimberlite pipes in the approximate amounts
noted below:

Diavik Kimberlite Pipes (100% basis)

Tonnes Processed(millions)

A-154 South

0.5

A-154 North

0.7

A-418

0.9

In addition to the 7.0 million carats produced from run of mine ore,
there will be a small amount of production from COR. This additional
production is not included in the Company’s ore reserves, and is
therefore incremental. Based on historical recovery rates, the tonnage
of this material that is planned to be processed during calendar 2016
would produce 0.1 million carats from COR.

The aforementioned mine plan for the Diavik Diamond Mine was prepared
and verified by Diavik Diamond Mines (2012) Inc. (“DDMI”), operator of
the Diavik Diamond Mine, under the supervision of Calvin Yip, P. Eng.,
Principal Advisor, Strategic Planning of DDMI, and a Qualified Person
within the meaning of National Instrument 43-101 of the Canadian
Securities Administrators.

Diavik Diamond Mine Production 40% basis

For the three months ended December 31, 2015

For the three months ended December 31, 2014

Pipe

Ore Processed(000s tonnes)

Carats(000s)

Grade(carats/tonne)

Ore Processed(000s tonnes)

Carats(000s)

Grade(carats/tonne)

A-154 South

55

202

3.66

45

176

3.93

A-154 North

46

100

2.18

77

159

2.06

A-418

84

290

3.44

82

270

3.29

COR

-

6

-

-

12

-

Total

185

598

3.19(a)

204

617

2.96(a)

(a) Grade has been adjusted to exclude COR

For the twelve months ended December 31, 2015

For the twelve months ended December 31, 2014

Pipe

Ore Processed(000s tonnes)

Carats(000s)

Grade(carats/tonne)

Ore Processed(000s tonnes)

Carats(000s)

Grade(carats/tonne)

A-154 South

210

760

3.61

200

760

3.80

A-154 North

253

541

2.14

357

766

2.14

A-418

328

1,186

3.62

350

1,278

3.65

COR

3

75

-

3

88

-

Total

794

2,562

3.14(a)

910

2,892

3.09(a)

(a) Grade has been adjusted to exclude COR

PricingBased on the Company’s sales during the
fourth calendar quarter of 2015 and the current diamond recovery profile
of the Diavik processing plant, the Company has modeled the approximate
rough diamond price per carat for each of the ore types below.

Diavik Ore Type

December 2015 Average Price per Carat

(in US dollars)

A-154 South

$125

A-154 North

$165

A-418

$90

COR

$45

Forward-Looking InformationCertain information
included herein, including information about mining activities and
estimated production from the Diavik Diamond Mine, constitutes
forward-looking information or statements within the meaning of
applicable securities laws. Forward-looking information is based on
certain factors and assumptions including, among other things, the
current mine plan for the Diavik Diamond Mine; mining, production,
construction and exploration activities at the Diavik Diamond Mine;
required operating and capital costs; labour and fuel costs; currency
exchange rates; world and US economic conditions; future diamond prices;
and the level of worldwide diamond production. Forward-looking
information is subject to certain factors, including risks and
uncertainties, which could cause actual results to differ materially
from what the Company currently expects. These factors include, among
other things, the uncertain nature of mining activities, including risks
associated with underground construction and mining operations, risks
associated with joint venture operations, including risks associated
with the inability to control the timing and scope of future capital
expenditures, the risk that the operator of the Diavik Diamond Mine may
make changes to the mine plan and other risks arising because of the
nature of joint venture activities, risks associated with the remote
location of and harsh climate at the Diavik Diamond Mine, variations in
mineral resource and mineral reserve estimates, grade estimates or
expected recovery rates, failure of plant, equipment or processes to
operate as anticipated, risks resulting from the Eurozone financial
crisis, risks associated with regulatory requirements and the ability to
obtain all necessary regulatory approvals, modifications to existing
practices so as to comply with any future permit conditions that may be
imposed by regulators, delays in obtaining regulatory approvals and
lease renewals, the risk of fluctuations in diamond prices and changes
in US and world economic conditions, the risk of fluctuations in the
Canadian/US dollar exchange rate and cash flow and liquidity risks.
Actual results may vary from the forward-looking information. Readers
are cautioned not to place undue importance on forward-looking
information, which speaks only as of the date of this disclosure, and
should not rely upon this information as of any other date. While the
Company may elect to, it is under no obligation and does not undertake
to, update or revise any forward-looking information, whether as a
result of new information, further events or otherwise at any particular
time, except as required by law. Additional information concerning
factors that may cause actual results to materially differ from those in
such forward-looking statements is contained in the Company's filings
with Canadian and United States securities regulatory authorities and
can be found at www.sedar.com
and www.sec.gov,
respectively.

About Dominion Diamond CorporationDominion
Diamond Corporation is the world’s third largest producer of rough
diamonds by value.Both of its production assets are located in
the low political risk environment of the Northwest Territories in
Canada where the Company also has its head office. The Company is well
capitalized and has a strong balance sheet.

The Company operates the Ekati Diamond Mine through its 88.9%
ownership as well as a 65.3% ownership in the surrounding areas
containing additional reserves and resources, and also owns 40% of the
Diavik Diamond Mine.Between the two mining operations, diamonds
are currently produced from a number of separate kimberlite pipes
providing a diversity of diamond supply as well as reduced operational
risk.It supplies premium rough diamond assortments to the global
market through its sorting and selling operations in Canada, Belgium and
India.